DENVER, Colo. (KDVR) — Two former Colorado business executives have been sentenced to federal prison after defrauding a data management company of nearly $2 million in a years-long scheme involving fraudulent invoices and fake services.
On Monday, the U.S. Attorney’s Office for the District of Colorado announced that Michael Vergato, 52, former Vice President of Arrow Electronics, was sentenced to 46 months in prison, fined $20,000, and ordered to jointly pay restitution.
His co-defendant, Mark Perlstein, 60, former CEO of Datavail Corporation, previously pleaded guilty to wire fraud and was sentenced to 25 months in prison and fined $15,000.
Details of the Scheme
Between 2013 and 2020, the two men created a fake consulting company called Oracle Performance Tuning and Optimization, LLC (OPTO). The business, created by Vergato under his stepdaughter’s name to hide his identity, never performed any actual services.
Despite this, OPTO submitted 21 fraudulent contracts and invoices, totaling $1,949,023, which Perlstein, as CEO of Datavail, approved for payment.
The funds were divided between the two:
Perlstein received over $1 million
Vergato took approximately $874,000, spending it on luxury vehicles, rent, credit card payments, and retirement savings
Tax records later confirmed that OPTO never issued W-2s, paid salaries, or contracted any legitimate work, according to the investigation by the FBI.
Aftermath and Sentencing
U.S. Attorney Peter McNeilly emphasized the broader impact:
“Corporate fraud of this magnitude undermines confidence in our business community… These sentences send a clear message: executives who abuse their authority for personal gain will be held accountable.”
In addition to prison time and fines, both Vergato and Perlstein were ordered to serve three years of supervised release and must jointly repay the $1.95 million they stole.
